IRIS International Railway
Industry Standard
The Global Quality Standard for the
Railway Industry
IRIS Conference – May 21
IRIS Conference May 2008
Presentation by Pierre Pelouzet – Purchasing Director
Direction de
High Level Certification: a necessity for rail
The SNCF purchasing in brief:
6 large purchasing segments
In 2007 :
General Supply
More than 9 billions euros of
purchase (excluded RFF tolls)
Railway and civil works
About 25 000 orders per year
Energy
Services
Intellectual services
Rolling Stock
Purchasing is the 2nd element of spend for SNCF :
A crucial tool to control the costs and the quality of its own services
Direction des Achats
3
High Level Certification: A necessity for rail
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Direction des Achats
4
High Level Certification: A necessity for rail
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Direction des Achats
5
High Level Certification A necessity for rail
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Direction des Achats
6
High Level Certification A necessity for rail
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Direction des Achats
7
Direction des Achats
8
IRIS - International Railway Industry Standard
The Quality Standard for the Railway Industry
High level certification: A necessity for Rail
First IRIS Conference
Brussels, May 21st, 2008
Pierre Attendu
Chief Procurement Officer
Bombardier Transportation has its global headquarters in Berlin, Germany with a
presence in over 60 countries. It has an installed base of over 100,000 vehicles
worldwide. The Group offers the broadest product portfolio and is recognized as
the leader in the global rail sector.
Workforce*
31,485
Countries with
Production Presence
21
Production Sites
43
Revenues**
Order Backlog*
$ 7.8 billion US
$ 30.9 billion US
* as at 31 January, 2008
** year ending 31 January, 2008
© Bombardier Inc. or its subsidiaries. All rights reserved.
Bombardier Transportation
IRIS - The Quality Standard for the Railway Industry
– Sector specific requirements on the top of ISO 9001.
– An evaluation process to be performed by independent and
approved certification bodies.
– A web-based information tool including information about audit
results.
IRIS is not competing against any other Certification Scheme.
© Bombardier Inc. or its subsidiaries. All rights reserved.
We welcome,
A common global system for the evaluation of Business
Management Systems specific to the railway industry, that includes
Our Expectations towards the IRIS certification scheme
Stable process and improved interfaces by standardized requirements.
Less auditing by recognition of IRIS certificates.
Reliable Information about suppliers of the railway industry.
To build confidence and partnerships
© Bombardier Inc. or its subsidiaries. All rights reserved.
Reduction of cost of poor quality in the whole supply chain.
IRIS Commitment of System Integrators
–
–
–
–
Bombardier Transportation
Alstom Transport
AnsaldoBreda
Siemens Transportation Systems
Committed (2006-05-18) to
recognized IRIS certificates and
therefore to not initiate business
management system audits at
companies having a valid IRIS
certificate.
project and/or product audits have
different purposes and so they are not
part of this commitment.
© Bombardier Inc. or its subsidiaries. All rights reserved.
The four System Integrators:
Bombardier approach
– 8 BT sites are already IRIS certified with a score > 80%
(Spain, Germany, Sweden, China)
– Further sites will follow in accordance with our global certification plan.
In terms of our suppliers:
– Preferred suppliers are expected to be IRIS certified by May 2009 and to
grant access to their IRIS results.
– In this case: BT’s supplier evaluation and approval process will be reduced to
topics that are not covered by IRIS, such as supplier performance, financial
health, capabilities and capacities issues.
– Targeted suppliers not meeting the deadline will be considered as
“NOT preferred supplier” in new contracts.
© Bombardier Inc. or its subsidiaries. All rights reserved.
BT fully support IRIS and is committed to obtain IRIS certification for its
own sites
Tel:
+49 30 98607 1400
Fax:
+49 30 98607 2400
Mail:
pierre.attendu@de.transport.bombardier.com
Web:
www.bombardier.com
www.theclimateisrightfortrains.com
© Bombardier Inc. or its subsidiaries. All rights reserved.
Pierre Attendu
© Bombardier Inc. or its subsidiaries. All rights reserved.
A benefit for
the railway
industry!
Knorr-Bremse,
Dr. Albrecht Köhler
Brussels, 21st May 2008
Knorr-Bremse Group
Knorr-Bremse Rail Group – Product Overview Brake Systems (Extract)
Brake Systems for Rail Vehicles - Product Overview
(Extract)
Brake- and System Control
Air Supply
EP Compact
Screw/
Piston
Compressor
EP
2002
MBS (Locomotives)
Under floor
assembly
Hydraulics
Bogie Equipment
Eddy Current Brake
Magnetic Track Brake
Knorr-Bremse Group
Oil free
Compressor
Brake Caliper
Brake Disc
Hydraulic Unit
Brake Caliper
Knorr-Bremse Rail Group – Product Overview On-Board Systems (Extract)
On-Board Systems for Rail Vehicles - Product Overview
(Extract)
Door Systems
HVAC
Power Supply
Disconnector
Braking Resistor
Platform Door Systems
Toilets / Electronics
Signaling / Power Supply
Electronic
Voltage
Converter
Knorr-Bremse Group
IRIS supports Zero Defect Approach of Knorr-Bremse
Remaining major improvement areas for achieving Zero Defect:
- Product Engineering
- System Engineering
- Project Management
Various factors which influence
our systems and growing complexity
of supply chain result in increasing
challenge on these key elements
IRIS defines requirements
for engineering and project
management processes
A successful management
system is absolutely necessary
to ensure that well defined
processes are in place and
regularly improved
Result
End User /
Customer
Requirements
Interface
of Products to
Customer Systems
Main Influence
on Product and
System Quality
Equipment
Manufacturer
Requirements
Environmental
Influence
Track
Environmental
Influence
Car
Improved process and product quality leads to reduced quality costs
Knorr-Bremse Group
IRIS – Railway standard for business processes
IRIS sets the standard for processes in the railway industry
IRIS defines the requirements of the
General requirements
rail industry and fills the gaps
Improvement
Documentation requirements
Analysis of data
Knowledge management
of ISO 9001:2000
Control of nonconforming processes
Management of Multisite projects
100
90
Control of nonconforming products
Monitoring and measurement
Measurement, analysis
and improvement
Biggest gaps of ISO 9001
in product realization
(e.g. project management,
first article inspection,
RAMS/LCC)
Obsolescence Management
IRIS is driving topics which were
neglected in the past (e.g.
configuration management,
obsolescence management)
RAMS / LCC
80
Management commitment
70
Customer focus
60
50
Quality policy
40
Planning
30
Responsibility, authority
and communication
20
10
Commissioning /
customer service
0
Management review
First article inspection
Provision of resources
Configuration management
Project management
Control of monitoring
and measuring devices
Production scheduling
production and service
provisions Purchasing
Design and development
max IRIS Rev01
Human resources
Infrastructure
Contingency plan
Work environment
Planning of production realization
Customer
related processes
Tender
Management
min IRIS rev01
Detailed questionnaire shows potentials for process improvements
Knorr-Bremse Group
ISO
IRIS – Certification and Audit Standard
IRIS provides a high level certification and audit standard
One unique and high level international rail standard leads to upgrade of
management system and improved processes
IRIS audit tool supports internal pre-assessments
Fair and objective evaluation by accredited certification bodies with
experienced auditors familiar with the Railway Industry
Standardized and detailed audit report with maturity score is available
Elimination of comprehensive system audits by major system integrators
Areas of Improvement:
¾ IRIS shall be accepted by all system integrators and operators
¾ IRIS shall be joined quickly by all major suppliers in the rail industry
¾ International presence of Certified Bodies is necessary
¾ IRIS standard must not be weakened by ‘generous’ auditors
Result
IRIS builds mutual trust with customers and supports preferred partnerships
Knorr-Bremse Group
IRIS in Knorr-Bremse Rail Group
IRIS Certification in Knorr-Bremse Rail Group
Knorr-Bremse is
absolutely
convinced about
the benefit of IRIS
IRIS will be an
important
prerequisite for
railway market
access, specially
for preferred
suppliers
IRIS certification 2007
IRIS certification 2008
IRIS certification 2009
Commitment
Knorr-Bremse Group
All relevant 23 Knorr-Bremse locations will be IRIS certified until mid of 2009
Knorr-Bremse Group
IRIS Conference
Brussels, May 20/21 2008
German Railway Industry Association
Axel Schuppe, General Manager
The German Railway Industry Association
The current business situation
The value of IRIS
Conclusion and outlook
Mai 2008
IRIS
VDB ...
was founded in 1877
represents the interests of manufacturers of railway technology
includes more than 110 member companies with about 40.000 employees in all fields of railway
technology (rail vehicles and accessory, mechanical and electrical components, railway infrastructure
and electrification, information and communication systems, magnetic levitation systems, train control,
signaling and safety systems)
works within 18 spezialised sections and working groups
represents its members interests towards the public, politics, customers, national and international
authorities, institutions and organisations for the sustainable promotion of railway traffic
active participation in shaping the industries economical, technical, political and legal conditions
Mai 2008
IRIS
27
Organization of the VDB
Mai 2008
IRIS
SHW
Weichenbau
GmbH
Mai 2008
IRIS
The German Railway Industry Association
The current business situation
The value of IRIS
Conclusion and outlook
Mai 2008
IRIS
Turnover in the German Railway Industry (VDB-Members).
12
+5,5%
10
9,1
Gesamt in Mrd. €
9,6
Inland in Mrd. €
Ausland in Mrd. €
8
6
4,5
4,6
4,5
4
2
0
2006
Mai 2008
2007
IRIS
5,1
Order intake in the German Railway Industry (VDB-Members).
+1,0%
12
10,7
10,6
Gesamt in Mrd. €
Inland in Mrd. €
10
Ausland in Mrd. €
8
6,2
5,8
6
4,9
4,4
4
2
0
2006
Mai 2008
2007
IRIS
Turnover and Order intake in the Railway Industry
in chronological Order (VDB Members)
12
10,6
9,3
10
9,3
9,9
8,9
8,1
8
7,3
6,8
6,4
6
6,0
5,9
9,9
10,7
10,0
9,0
9,1
9,6
8,4
7,2
7,7
6,7
6,2
Umsatz in Mrd. €
4
Auftragseingang in Mrd. €
2
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Mai 2008
IRIS
Available Global Market for Railway
Technology incl. Tracking & incl. Services in 2005*, Growth Rate till 2012.
NAFTA
WESTERN EUROPE
EASTERN EUROPE
2005: 14,3 – 19,0 bn €
~ + 1,7% - 2,5% p.a.
2005: 22,3 – 25,8 bn €
~ + 1,0% - 2,1% p.a.
2005: ~ 3,7 bn €
~ + 3,5% p.a.
The Impulses of Growth:
CIS
TOTAL
2005: ca. 63,2 – 72,7 bn €
+ 2% - 2,5% p.a.
p.a.
• Environment and climate issues
• Economical globalisation
• Increasing fuel prices
• Worldwide conurbations
• Liberalisation and deregulation
• Interoperability
2005: ~ 4,5 bn €
~ + 3,3% p.a.
CENTRAL & SOUTH AMERICA
AFRICA & MIDDLE EAST
ASIA & PACIFIC
2005: ~ 2,2 bn €
~ + 2,0% – 3,3% p.a.
2005: ~ 1,5 bn €
~ + 3,5% - 3,7% p.a.
2005: 14,7 – 16,0 bn €
~ + 3,0% - 5,0% p.a.
References: F & S 2006, SCI 2006, Unife 2007, own calculations
Mai 2008
* average of the years 2003-2005
IRIS
The German Railway Industry Association
The current business situation
The value of IRIS
Conclusion and outlook
Mai 2008
IRIS
Value of IRIS – some questions
How to keep this growth sustainable?
How to gain the best share for the Eureopean rail supply industry in the growing market?
Could IRIS be one part of the answer even for SME‘s?
Mai 2008
IRIS
Conclusion and outlook
IRIS encourages process innovation
IRIS contributes to an improvement of product quality
IRIS helps to save cost
IRIS (the IRIS approach) has the potential to become more than a rail supply industry
standard while becoming mutually recognized
by rail supply industry customers and operators
within EU certification procedures by NoBo‘s
for certification of maintenance workshops
Mai 2008
IRIS
The German Railway Industry Association
The current business situation
The value of IRIS
Conclusion and outlook
Mai 2008
IRIS
The Rail Supply Indystry: A „Hidden Champion“ of the Economy
Mai 2008
IRIS
Verband der Bahnindustrie in
Deutschland (VDB) e.V.
With excellent and efficiant railway system solutions for more
sustainable traffic on rail.
www.bahnindustrie.info
Knorr-Bremse Group
IRIS International Railway
Industry Standard
The Global Quality Standard for the
Railway Industry
IRIS Conference – May 21
IRIS International Railway
Industry Standard
The Global Quality Standard for the
Railway Industry
Friedrich Smaxwil
Member of the Executive Management Board of Siemens TS
GDP-growth of China and India (optional slide)
China
GDP
(in bn. USD)
USA
30,000
India
20,000
10,000
Japan
Germany
0
2000
2005
2010
Source: GoldmanSachs
2015
2020
2025
2030
2035
2035
2040
2040
2045
2045
2050
Rotem – from local low-end player
to international player
Germany
Offer
Ireland
Spain
2005
Offer
150 DMU
Canada
Hungary
2005 40 EMU
Offer
Turkey
2001
2005
2006
2000
2001
Monopoly in
domestic market
Hong Kong
120 DMU
1998 104 Metro
Greece
2004
2002
USA
2004
2006
2007
2008
Korea
2003 50 DMU
2004
2003
2006
Syria
Iran
2002
2005
92 EMU
34 LRV
24 DMU
96 EMU
2008
2004 32 Metro
126 Metro
Taiwan
1999
32 DMU (TTA pending)
104 EMU (SEPTA)
131 Double deck - PC
75 Double deck - PC
Saudi Arabia
2003
17 PC
Philippines
New Zealand
2000
2007
2007
72 EMU
Bangladesh
PC: Passenger Coaches
DMU: Diesel Multiple Unit
EMU: Electrical Multiple Unit
LRV: Light Rail Vehicle
Figures indicate quantity of cars
2003
2003
2004
11 Locomotives
India / Delhi
Brazil
24 EMU
80 Metro
56 Metro
2001 240 Metro
2007 90 Metro
156 Metro
70 EMU
35 EMU
European manufacturers still outpace
Asian companies...
System integrators with highest sales volume in railway sector by regions
(sales in billion EUR)
European
Alstom + Ansaldo Transport + Bombardier + Siemens
suppliers
US
GE + Trinity
suppliers
Asian
suppliers
CSR + CNR + Kawasaki
Russian
suppliers
Transmash
4.6
4.2
1.2
Source: SCI Verkehr, VDB, Wettbewerbsbericht Deutsche Bahn
16.3
Secure market advantages with IRIS
European manufacturers can maintain their lead with
Stabile, efficient processes
Optimal meshing of processes between suppliers and
system integrators
Î IRIS plays an important part in this process
In short: IRIS increases the chance of getting
a good product at a competitive price
Asian rail technology in the world market
Ireland
Germany
Turkey
2005 150 DMU
Offer
Great Britain
Spain
2005 28 EMU
Offer
2001 92 EMU
2005 34 LRV
24 DMU
2006 96 EMU
Hungary
Korea
Monopoly in
domestic market
China
Offer
Syria
Canada
2003 50 DMU
2005 Track Rehab
2005 40 EMU
1998 80 locos
480 EMU
300 metro
Iran
2004 120 DMU
Japan
Greece
Key player in
domestic market
2002 126 Metro
USA
1997
1998
2002
2004
2004
400
212
680
32
104
131
2008 75
metro
metro
metro
DMU (TTA pending)
EMU (SEPTA)
Double deck - PC
Double deck - PC
2007 LR Trinidad
Saudi Arabia
2003 17 PC
2006 North-South
2003
2004
Thailand
Dubai
2005
40 DE Locos
2005 Monorail
Bangladesh
Nigeria
Singapore
2003 11 Locomotives
2006 Lagos Rail
1998 66 metro
India / Delhi
Philippines
2001 240 Metro
2007 90 Metro
156 Metro
2006 LRT Colombo
Brazil
Subsystem suppliers
Taiwan
Caribbean
24 EMU
80 Metro
2000
72 EMU
Indonesia
2005 Java Turnkey
1999
2000
2003
2005
56Metro
High-Speed
321 metro
High-Speed
Hong Kong
1998 104 Metro
2004 32 Metro
New Zealand
2007 70 EMU
35 EMU
Î Growing global involvement of Asian system integrators
Î Growing interest of Asian railway subsystem suppliers in IRIS
Î An opportunity to show a company’s areas of competence
IRIS opens up global sourcing in Asia
IRIS reduces the risks of global sourcing
IRIS simplifies the process and makes it less expensive
Asian providers with IRIS certification become much more
likely potential business partners
来自亚洲的竞争 :
对欧洲制造商的挑战 ?
(Asian Competition : a challenge for european manufacturers?)
Pierre Sainfort – COO Faiveley
File: IRIS
Asia:
before being a challenge with competition, is a
huge opportunity
• Domestic market (China , India)
• Overseas Strategy & Ambition of local Car Builders (China, Korea)
Beijing
Datong
QingDao
Shijiazhuang
Seoul
Shanghai
Baddir
Delhi
Hong Kong
Bangalore
X
X
X
X
X
File: IRIS
Faiveley
Faiveley
Faiveley
Faiveley
Faiveley
Air Conditioning since 1994
Brake Systems since 1995
Platform Screen Doors since 1999
Passenger Access Doors since 2002
Couplers since 2007
Asia: a cultural challenge
File: IRIS
Asia: a stability challenge (China, India)
X
Extreme contrasts
X
Human Ressources
y for urban citizens, english speaking, educated: salary increase
+10/20%/year – loosing people @ +30% (purchasing, quality, SQA…)
X
Finance
y exchange rate evolution vs €,$
y volume management > profit management > cash management
X
File: IRIS
Quality
(base=FT domestic suppliers)
y poor results local supplier quality audit
y poor ppm level , high NCR, multiple FAI,
y mandatory 100% Incoming Inspection before use/shipment
Asian Competition: a true challenge
X
X
Cultural Challenges
Stability Challenges
BUT
X
X
X
File: IRIS
Very Fast Learning,
High Skills and Competencies,
Future Very Active Players,
File: IRIS
IRIS - Seminar
Foucauld de LAUZON
AFAQ AFNOR Asia
foucauld.delauzon@afnor.org
NORMALISATION
Standardization
process
Standards &
Books sales
Training
European (CEN)
and International (ISO)
standards
Information & Intelligence
Sector schemes and
Trades approach
International Relations
AFNOR on-line shop
QHSE
Services
Products
Metrology
Audit
27 500 experts
124 000 items
10 000 trainees
Assessment
& Certification
QSE Management Systems
Services
Products
Competences
Labels
65 000 certified sites
The railway industry in China
¾ Railway development in China
¾ Increasing of outsourcing
in China
59
IRIS awareness in China
¾ From “ IRIS … what is IRIS ? ”
¾ Commitment of major purchasers
¾ Market open and curious about new initiatives
¾ Companies looking for recognition from outside China
¾ To “ How do I get IRIS certificate ? ”
IRIS …. a large range of questions
¾
¾
¾
¾
¾
¾
¾
¾
¾
QMS Quality Management System
IRIS
Auditing
RAMS
LCC
Project Management
Product testing
Product certification
…
May 2008 …
middle of a 3 keys steps for IRIS
¾ 2007 .. .. awareness
¾ 2008 .. .. implementation
¾ 2009 .. .. certification ?
File: IRIS
Asian Competition,
a challenge for European
manufacturers
José Taborda
21st May 2008
TRANSPORT
The world we know…
- - P 65
The world… railway oriented !
- - P 66
ALSTOM Transport in China
Subsidiaries and joint ventures
QINGDAO:
Dampers
Employees
31
ALSTOM
China Ltd. Holding
Employees
Employees
Holding
CASCO:
Signalling
YONGJI:
Motors
Employees
271
112
Transport
New JV
SATCO
Rolling Stock
Employees
313
21
In M Euros
Hong-Kong:
Signalling
Employees
47
SATEE:
Traction
ATSL
Services
Employees
- - P 67
270
Employees
70
Boost purchases in Emerging markets
Alstom Transport Purchases
2006/2007
96.8%
2009/2010
2.9
%
0.4
%
Western Countries
70%
15
%
15
%
East Europe Countries
ASIA
915 Asian suppliers to be part of LP150 program
- - P 68
IRIS is at the heart of Suppliers Development
SQA
Sourcing
- - P 69
Technical
Support
IPOs in Asia
SQA
India
IndiaSourcing
Sourcing
Office
Office
Jan
Jan2008
2008
Sourcing
- - P 70
Technical
Support
China
ChinaSourcing
Sourcing
reinforcement
reinforcement
since
sinceMay
May2007
2007
Alstom Transport Approach
Communication to Suppliers Panel
− Standard letter sent on 28/08/2006 to Alstom Transport
Panel Suppliers requiring certification by end of 2008
− Strong follow up on Key Suppliers by Commodities
From January 1st 2009, IRIS Certification will be a
discriminatory factor
All suppliers (including Asian) will follow the same
program
- - P 71
Benefits of IRIS in Asia
Benefits will be the same as in Europe
– Quality will increase across the entire supply chain
– Evaluation and approval of equipment manufacturers will
become more efficient
– Cost for manufacturers and suppliers will decrease
– Comprehensive data and its accessibility will improve
Moreover
– Clear Iris requirements will enable Asian supplier to be
compliant sooner
– A certified Asian supplier base will push to industrial
excellence the global base
– Asian supplier quality systems will become legitimate
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Improvement for IRIS deployment in Asia
Issues
– Little knowledge of the IRIS standard in Asia by our
Suppliers (except for European subsidiaries)
– Little Certification bodies competent resources available
in Asia. That does not allow the right speed in the
deployment of this new standard
Suggestions
– UNIFE/IRIS event in Asia: China and India
– Certification Bodies in Asia posted on IRIS Website
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